KYOKUTO SECURITIES CO.,LTD. (8706) Stock Price

極東証券 (Kyokuto Securities) primarily engages in the buying and selling of securities, brokerage services, underwriting, and public offerings. The company operates four business segments: financial products trading, investment, real estate, and research and analysis. However, these are consolidated and reported as a single segment under "investment and financial services."

In financial products trading, Kyokuto Securities conducts Type I and Type II financial instruments trading business domestically. Its subsidiary, FE Invest Co., Ltd., operates a Type II financial instruments trading business and manages and operates investment funds.

In the investment business, FE Invest Co., Ltd. conducts long-term investments using its own capital with the aim of securing stable returns. This business emphasizes a long-term investment perspective.

In real estate, Kyokuto Property Co., Ltd. operates real estate operations and leases office space and storefronts for Kyokuto Securities' branches and locations. This business focuses primarily on rental operations leveraging the company's real estate assets.

In research and analysis, Kyokuto Securities Economic Research Institute Co., Ltd. conducts research and analysis of domestic and international economic and financial markets on commission from Kyokuto Securities. This business aims to provide information supporting the company's investment decisions.

Since its founding, Kyokuto Securities has upheld the fundamental principle of "trust as the foundation of all things" and has promoted a face-to-face business model based on trust. While maintaining this commitment, the company aims for sustainable growth by flexibly adapting to market and regulatory changes. Through its medium-term business plan (fiscal years 2024–2026), Kyokuto Securities seeks to maximize corporate and shareholder value while contributing to asset formation for the nation as a whole.

Kyokuto Securities pursues sustainable growth while maintaining its distinctive business model. Based on its Sustainability Basic Policy, the company is mindful of all stakeholders and works to enhance corporate value and contribute to sustainability through financial markets. As a company listed on the Tokyo Stock Exchange Prime Market, Kyokuto Securities promotes management with awareness of capital costs and stock price, while strengthening its corporate governance framework.

In response to changes in the operating environment, Kyokuto Securities has reviewed its medium-term business plan and identified three key priorities: "expanding the revenue base," "enhancing human capital," and "ensuring thorough compliance." In particular, the company is working to improve profitability through customer base expansion and diverse product offerings. The company also places emphasis on developing human capital and cultivating highly skilled personnel.

Kyokuto Securities places importance on improving customer satisfaction and strives to enhance the evaluation of its products and services. Notably, the high ratio of new customer referrals from existing customers demonstrates the strength of the company's face-to-face business model. Going forward, the company is committed to improving customer satisfaction through customer loyalty surveys.

To improve profitability, Kyokuto Securities aims to achieve ROE that exceeds its cost of capital. The company seeks to diversify its revenue structure so that commission income, trading revenue, and other sources contribute in a balanced manner to overall earnings. In particular, investment trust sales have been strong, with increases in fees received.