Toyo Securities

Basic Information

Stock Code
8614
Industry
Securities and Commodity Futures Trading
Category Detail
Securities
Prefecture
Tokyo
Establishment Year
April 1934
Listing Year
June 1986
Official Website
https://www.toyo-sec.co.jp/
TSE Information
TSE Information
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Overview

Toyo Securities is a mid-sized securities firm founded in 1934, a leading company in the financial instruments business with strengths in Chinese stock trading.

Current Situation

Toyo Securities recorded consolidated sales of approximately 8.3 billion yen and net assets of approximately 34.2 billion yen for the fiscal year ended March 2023, maintaining a solid financial base. It primarily provides stocks, investment trusts, and other financial products, starting with Chinese stocks, to individual investors, and is expanding nationwide as a mid-tier securities firm. In recent years, it has strengthened collaboration with Asian markets, promoting information exchange in regional economies through a business alliance with Taiwan's Huanan Yongchang Securities. It is also focusing on digitalization and the expansion of online trading to enhance customer convenience. Although it received an administrative penalty in 2018, it has since strengthened its compliance framework. Aiming for sustainable management, it is working to enhance customer trust and develop products tailored to market needs. In 2024, there was a change in the representative director, and it is implementing growth strategies under the new leadership.

Trivia

Interesting Facts

  • Securities firm with a long history, founded in Kure, Hiroshima Prefecture in 1916.
  • Holds particularly high performance in Chinese stock trading in the Japanese market.
  • Established Japan's first unit-type Chinese stock investment trust in 1997.
  • One of the few mid-tier firms deploying store-based securities services domestically and internationally.
  • Aggressively building networks with securities firms in Asia.
  • After receiving an administrative penalty in 2018, undertook system reform to restore trust.
  • Celebrated 100th anniversary of founding in 2016 with events nationwide.
  • Inherits traditions of regional finance dating back to the Edo period.
  • Approximately 670 employees, with a roster of highly specialized talent.
  • Occupies a position among mid-tier securities firms listed on the TSE Prime Market.
  • Independent securities firm with strong ties to Sumitomo Life.
  • Unique base deployment centered on the Chugoku region outside Tokyo.
  • Pioneer in early commercialization of yuan-denominated investment trusts.
  • Transitioning step-by-step from family management to modern corporate structure.
  • Notable for withdrawing president reappointment proposal at well-known shareholders' meeting.

Hidden Connections

  • Shareholder relationship with Sumitomo Life Insurance advances business partnerships in the life insurance market.
  • Leveraging strengths in Chinese market, implemented business alliance with Taiwan's Huanan Yongchang Securities.
  • Diverse networks formed in management layer through changes in shareholders and proxies.
  • Actively collaborates and exchanges information among Japan's mid-tier securities firms.
  • Maintains close cooperative relationships with regional financial institutions due to broad customer base.
  • Challenging differentiation from net securities through strengthened online trading.
  • Strengthened ties to Chinese economy through establishment of yuan-denominated bond investment trust.
  • Flexible management decisions respecting shareholder intentions at representative director change garnered attention.

Future Outlook

Growth Drivers

  • Chinese economic recovery driving stock market activity
  • Customer base expansion through strengthened Asian partnerships
  • Spread of online trading services
  • Increasing demand for asset management among individual investors
  • Advancement of financial technology (FinTech) utilization
  • Product development responding to ESG investment growth
  • Digital transformation of securities intermediation business
  • Deepening of locally rooted services
  • Strengthening deployment of diverse investment trust products
  • New customer acquisition through investment education for younger generation
  • High-value addition to asset management consulting
  • Introduction of new services through regulatory easing

Strategic Goals

  • Achieve top domestic share in individual Chinese stock trading
  • Over 500,000 online and mobile trading users
  • Maintain and improve customer satisfaction above 90%
  • Achieve sustainable management and environmental load reduction goals
  • Expand and strengthen networks within Asia
  • 30% improvement in cost efficiency through digital technology utilization
  • Diversification of revenue sources through diverse financial products
  • Establish framework flexible to regulatory changes
  • Strengthen local bases through collaboration with regional financial institutions
  • Nationwide rollout of investment education programs

Business Segments

Corporate Stock Brokerage

Overview
Provides stock trading support and capital policy services for corporate customers.
Competitiveness
Tailored services responding to individual needs
Customers
  • Investment Funds
  • Institutional Investors
  • Listed Companies
  • Regional Financial Institutions
  • Securities Firms
Products
  • Corporate Stock Trading Agency
  • Tender Offer (TOB) Support
  • Timely Disclosure Assistance
  • Capital Policy Advice

Asset Management Consulting

Overview
Provides asset management advisory services to corporations and sole proprietors.
Competitiveness
Specialized investment knowledge centered on Chinese stocks
Customers
  • SME Owners
  • Sole Proprietors
  • Pension Funds
  • Corporate Pensions
  • Real Estate Management Companies
Products
  • Asset Allocation Proposals
  • Risk Management Advice
  • Inheritance Planning Investments
  • Pension Management Plans

Securities Market Research and Analysis

Overview
Provides market analysis information to financial institutions.
Competitiveness
Utilization of proprietary Chinese market data
Customers
  • Securities Exchanges
  • Financial Services Agency
  • Private Research Institutions
  • Economic Research Institutes
Products
  • Market Trends Reports
  • Investor Behavior Analysis
  • Risk Assessment
  • Regulatory Compliance Consulting

Overseas Partnership Services

Overview
Deploys partnership services for the Asian market.
Competitiveness
Strength of Chinese market network
Customers
  • Taiwan Huanan Yongchang Securities
  • Global Securities Firms
  • Overseas Investors
  • International Asset Management Companies
Products
  • Support through business partnerships
  • Information Exchange
  • Analyst Visits
  • Securities Market Development Support

Financial Product Development Support

Overview
Conducts product design and sales support for financial institutions.
Competitiveness
Proven know-how in Chinese stock funds
Customers
  • Trust Banks
  • Investment Trust Management Companies
  • Other Financial Institutions
Products
  • New Product Planning
  • Fund Design
  • Sales Strategy Advice

Education and Seminar Business

Overview
Education business centered on investment education and information provision.
Competitiveness
Locally rooted course offerings
Customers
  • Individual Investors
  • Corporate Training
Products
  • Investment Courses
  • Market Analysis Seminars
  • Online Webinars

Securities Settlement and Clearing Services

Overview
Undertakes settlement and clearing operations for securities transactions.
Competitiveness
Efficient settlement system operations
Customers
  • Securities Firms
  • Financial Institutions
  • Customer Agents
Products
  • Trade Settlement Processing
  • Customer Asset Management
  • Clearing Operations Outsourcing

Competitive Advantage

Strengths

  • Strength in Chinese stock market
  • Fine-tuned services for individual investors
  • Stable financial base
  • Long history and experience
  • Trusted relationships with Sumitomo Life and others
  • Broad regional expansion
  • Partnership network in Asia
  • Well-developed online trading environment
  • Employees' specialized knowledge
  • Flexible response as a mid-tier securities firm
  • Solid customer base
  • Abundant investment trust products
  • Local roots originating from Hiroshima
  • Prompt support system
  • Reliability in securities intermediation

Competitive Advantages

  • Differentiation through specialized products and services in Chinese stocks
  • Rapid customer response enabled by mid-tier size
  • High reliability from long industry experience
  • Strong partnership structure with Asian markets
  • Collaboration with strategic partners like Sumitomo Life
  • Improved convenience through both online and face-to-face services
  • Broadening customer base with diverse asset management products
  • Enhanced compliance through strengthened internal controls
  • Strong pipeline with regional financial institutions
  • Comprehensive investment information services for investors
  • High expertise and technology relative to scale
  • Meticulous asset management consulting
  • 敏捷 product development responsive to market trends
  • 対応 to diverse customer segments
  • Solid and prudent financial management

Threats

  • Intense competition with major securities firms
  • Political risks and regulatory changes in Chinese market
  • Increasing volatility in financial markets
  • Intensifying competition in digital securities services
  • Risk of image damage from administrative penalties
  • Risk of customer asset outflow
  • Profit pressure from low interest rate environment
  • Price competition from new entrants
  • Lag in technological innovation
  • Increased operating costs from stricter regulations
  • Cybersecurity risks
  • Fluctuations in international financial conditions

Innovations

2024: Management refresh through change in representative director

Overview
In 2024, Representative Director Norihiro Ogawa took office, building a new structure.
Impact
Improved management transparency and promotion of customer base expansion.

2023: Enhancement of online trading platform

Overview
Implemented smartphone app improvements and enhanced trading convenience.
Impact
Increased trading volume and successful acquisition of younger customers.

2022: Development of new investment trust specialized in Chinese stocks

Overview
Established a new fund responding to the Chinese economy.
Impact
Increased sales and improved customer satisfaction.

2021: Strengthening of compliance framework

Overview
Enhanced internal audit systems and employee training.
Impact
Restored trust from supervisory authorities and stabilized operations.

2020: Promotion of Asian market collaboration through strengthened overseas partnerships

Overview
Initiated business alliance with Taiwan's Huanan Yongchang Securities.
Impact
Information exchange and business expansion in Asia.

Sustainability

  • Focus on compliance adherence and transparency improvement
  • Promotion of investment education to enhance financial literacy
  • Deployment of locally rooted CSR activities
  • Promotion of environmentally considerate office operations
  • Promotion of paper resource reduction through digitalization
  • Improvement in employee diversity and work-life balance