Leading Securities Co.,Ltd (E23973) Stock Price

Leading Securities' primary business is financial product trading, centered on securities transactions including stocks, bonds, and investment trusts. The company executes commissioned trading on securities exchanges based on customer orders, while also conducting proprietary trading using its own capital. Additionally, the company handles underwriting and distribution services for initial public offerings and bond issuances.

The company serves a broad customer base ranging from individual investors to institutional investors, with trading commissions and trading spreads as primary revenue sources. In equity operations, revenue comes from commissioned trading fees and proprietary trading profits. In bond operations, the company earns revenue from secondary market transactions and underwriting fees on new bond offerings. In investment trust operations, the company generates fee income through distribution and trading of beneficiary certificates.

The company's business is divided into four major segments, with equity operations at its core. Bond operations include secondary market trading of government and corporate bonds as well as new bond distributions. Investment trust operations handle underwriting and trading of beneficiary certificates. The company also provides consulting services offering guidance and advice on corporate mergers and acquisitions, delivering comprehensive financial services.

Leading Securities is currently advancing its growth strategy with its core face-to-face sales division at the center. The company's main business pillars include brokerage services for Japanese and foreign stocks, investment trusts, and foreign bond sales. In the investment trust sector in particular, the company is focusing on sales of foreign private investment trusts in addition to publicly offered Japanese stock investment trusts. Regarding financial soundness, the company's capital adequacy ratio stands at 447%, significantly exceeding the 200% benchmark for financial health, establishing a stable management foundation.

The company's priority investment area is the expansion of China-related business. Through collaboration with group companies, the company is developing a strategy to uncover the needs of wealthy individuals not only in Japan but also in China, leveraging new private foreign investment trust sales as a catalyst. The company aims to develop new customer segments through strengthened product development capabilities and secure new revenue sources distinct from traditional ones.

In new market development, the company is focusing on cross-border transactions between Japan and China. The company positions China-related business advancement as a key pillar, including advisory services for Japan-China M&A and business partnership consulting between Japanese and Chinese companies. By enhancing expertise in this field, the company seeks to deliver high-value-added services that go beyond traditional securities trading operations.

Meanwhile, the company is also working to strengthen its management foundation through measures including addressing customer aging, strengthening talent recruitment, improving product offering capabilities, and enhancing its compliance framework. Particularly regarding the redemption issue of medical fee receivable securitization bonds, the company continues to take timely and appropriate action to fulfill its responsibilities as a selling securities firm, while advancing system improvements toward trust recovery and recurrence prevention.