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Financial results presentation8708AIZAWA SECURITIES GROUP CO.,LTD.Financials (excluding banks)

Earnings Presentation Materials for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027

For the cumulative second quarter of the fiscal year ending March 2027, operating profit turned positive as revenue from investment trusts, wrap-related services and the investment business increased. Gains on sales of investment securities also contributed, resulting in a substantial increase in net income.

Worth reading
51Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
17.7
% (year-on-year increase in operating revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter (interim period) of the fiscal year ending March 20277 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥11,695 million+17.7%
Operating profit¥708 million
Ordinary income¥1,014 million+832.7%
Net income¥1,836 million+83.5%
Selling, general and administrative expenses¥10,428 million
Results for the three months of the current quarter
Operating revenue
¥5,882 million
Selling, general and administrative expenses
¥4,983 million
Operating profit
¥470 million
Ordinary income
¥567 million
Pretax profit
¥1,405 million
Profit attributable to owners of parent
¥782 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Securities business operating revenue¥1,003 million
  • Investment business operating revenue¥749 million
  • Securities business—other adjustments¥724 million
  • Financial advisor¥318 million
  • Platform business¥235 million
  • Investment business—other¥-39 million
  • Payment commissions¥-382 million
  • Personnel expenses¥-390 million
  • Other selling, general and administrative expenses¥-303 million
  • Other operating expenses¥-83 million
  • Other trading-related expenses¥-69 million
  • Non-operating income and expenses¥-95 million
  • Extraordinary Income and Losses¥-29 million
  • Corporate Income Taxes¥-256 million
  • Profit attributable to non-controlling interests¥-49 million
New initiatives
  • Promote GBA-style sales at all branches from April 2026
  • Promote the GBA-style wrap service “Smile Goal”
  • Promote the GBA-style investment trust portfolio “α (Alpha) Port”
  • Expand the securities business platform business
Key KPIsA metric the company considers important as a management benchmark.
  • ROE (annualized)7.6 %
  • PBR1.09 times
  • Assets under custody in stock products¥6,813 100 million
    Compared with the end of the year-earlier period31.9
  • Total assets under custody¥26,650 100 million
    Compared with the end of the year-earlier period15.4
  • Coverage ratio of SG&A expenses by net recurring revenue from stock products38.2 %
Segment results
Securities Business
Operating revenue
¥10,495 million+10.6%
Pretax profit
¥507 million+80.1%
Investment Business
Operating revenue
¥1,154 million+185.0%
Pretax profit
¥1,687 million+47.7%
Asset management business
Operating revenue
¥237 million+96.8%
Pretax profit
¥-8 million
Group headquarters and other
Operating revenue
¥-191 million
Pretax profit
¥517 million
Medium-term management plan targets
PeriodApril 2025 to March 2028
Target
  • Transition to a business and earnings structure capable of achieving the ROE target consistently
  • Total assets under custody of ¥2.5 trillion or more
  • Assets under custody in stock products of ¥800 billion or more
Financial targets
ROE target8% or higher
Cost of shareholders’ equityApproximately 7–8%
Actual ROE7.6
Actual PBR1.09
Annual Dividend
Fiscal year ending March 2027
Interim DividendOrdinary ¥13, special ¥35, total ¥48
Year-end dividendOrdinary ¥35, special: undecided, total: undecided
AnnualUndecided
Fiscal year ending March 2028
Interim DividendOrdinary ¥35 (scheduled), special: undecided
Year-end dividendOrdinary ¥35 (scheduled), special: undecided
Annual¥70 (planned)
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Net Sales¥11,695 million (YoY +17.7%)
Operating profit¥708 million
Ordinary income¥1,014 million (YoY +832.7%)
Net income¥1,836 million (YoY +83.5%)
Selling, general and administrative expenses¥10,428 million
Results for the three months of the current quarterOperating revenue ¥5,882 million / Selling, general and administrative expenses ¥4,983 million / Operating profit ¥470 million / Ordinary income ¥567 million / Pretax profit ¥1,405 million / Profit attributable to owners of parent ¥782 million
Segment resultsSecurities Business Operating revenue ¥10,495 million (YoY +10.6%) / Pretax profit ¥507 million (YoY +80.1%) / Investment Business Operating revenue ¥1,154 million (YoY +185.0%) / Pretax profit ¥1,687 million (YoY +47.7%) / Asset management business Operating revenue ¥237 million (YoY +96.8%) / Pretax profit ¥-8 million / Group headquarters and other Operating revenue ¥-191 million / Pretax profit ¥517 million
Breakdown of Factors Affecting the ChangeFactors Securities business operating revenue / Amount ¥1,003 million, Factors Investment business operating revenue / Amount ¥749 million, Factors Securities business—other adjustments / Amount ¥724 million, Factors Financial advisor / Amount ¥318 million, Factors Platform business / Amount ¥235 million, Factors Investment business—other / Amount ¥-39 million, Factors Payment commissions / Amount ¥-382 million, Factors Personnel expenses / Amount ¥-390 million, Factors Other selling, general and administrative expenses / Amount ¥-303 million, Factors Other operating expenses / Amount ¥-83 million, Factors Other trading-related expenses / Amount ¥-69 million, Factors Non-operating income and expenses / Amount ¥-95 million, Factors Extraordinary Income and Losses / Amount ¥-29 million, Factors Corporate Income Taxes / Amount ¥-256 million, Factors Profit attributable to non-controlling interests / Amount ¥-49 million
Key KPIsIndicator name ROE (annualized) / Value 7.6 % / Year on year against the same period last year Not disclosed, Indicator name PBR / Value 1.09 times / Year on year against the same period last year Not disclosed, Indicator name Assets under custody in stock products / Value ¥6,813 100 million / Compared with the end of the year-earlier period ¥31.9 100 million, Indicator name Total assets under custody / Value ¥26,650 100 million / Compared with the end of the year-earlier period ¥15.4 100 million, Indicator name Coverage ratio of SG&A expenses by net recurring revenue from stock products / Value 38.2 % / Year on year against the same period last year Not disclosed
Medium-term management plan targetsPeriod April 2025 to March 2028 / Target Transition to a business and earnings structure capable of achieving the ROE target consistently, Total assets under custody of ¥2.5 trillion or more, Assets under custody in stock products of ¥800 billion or more
Financial targetsROE target 8% or higher / Cost of shareholders’ equity Approximately 7–8% / Actual ROE 7.6 / Actual PBR 1.09
Annual DividendFiscal year ending March 2027 Interim Dividend Ordinary ¥13, special ¥35, total ¥48 / Year-end dividend Ordinary ¥35, special: undecided, total: undecided / Annual Undecided / Fiscal year ending March 2028 Interim Dividend Ordinary ¥35 (scheduled), special: undecided / Year-end dividend Ordinary ¥35 (scheduled), special: undecided / Annual ¥70 (planned)
New initiativesPromote GBA-style sales at all branches from April 2026, Promote the GBA-style wrap service “Smile Goal”, Promote the GBA-style investment trust portfolio “α (Alpha) Port”, Expand the securities business platform business
Items this document does not state (16)
Gross Profit MarginOperating profit marginFull-year earnings forecastProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In the securities business, fund offering fees, trust fees and investment advisory fees related to wrap products increased. In the investment business, revenue from investee funds was recorded. In addition, gains on sales of cross-held shares and investment securities held in the investment business were recorded as extraordinary income.

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Earnings Presentation Materials for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 | AIZAWA SECURITIES GROUP CO.,LTD. (8708) timely disclosure | Komori