Maruhachi Securities

Basic Information

Stock Code
8700
Industry
Securities, Commodity Futures Trading
Category Detail
Securities
Prefecture
Aichi Prefecture
Establishment Year
March 1944
Listing Year
November 2004
Official Website
https://www.maruhachi-sec.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Imamura Securities, Daiwa Securities Group Inc., Nomura Holdings, Okasan Securities Group, Marusan, Toyo Securities, Tokai Tokyo Financial Holdings, Mito Securities, Nissan Securities Group, Kyokuto Securities, Iwai Cosmo Holdings, Aizawa Securities Group

Overview

Maruhachi Securities is a regional mid-sized securities firm founded in 1944 and headquartered in Nagoya City, Aichi Prefecture. It features regionally focused asset management services and collaboration with its parent company, Tokai Tokyo Financial Holdings.

Current Situation

Maruhachi Securities recorded sales of approximately 2.4 billion yen and net profit of approximately 160 million yen in FY2020, maintaining a stable financial base. Centered in Nagoya City, Aichi Prefecture, it provides regionally focused securities services and strengthens the group's management foundation as a subsidiary of Tokai Tokyo Financial Holdings. It introduced telecommunications trading and internet trading early, catering to a wide range of customers. In recent years, it has focused on dealing and market-making operations. From a sustainability perspective, it advances activities contributing to regional economic revitalization and aims for medium- to long-term growth through digitalization and enhanced customer services. Tokai Tokyo Financial Holdings exerts significant influence as a major shareholder, supporting management stability. Consolidation as a subsidiary in 2021 has expanded group synergies and enabled differentiation from competitors. Moving forward, it will balance regional closeness with digital innovation to pursue sustainable growth.

Trivia

Interesting Facts

  • Uses the 'Maruhachi' mark derived from the Owari Tokugawa family crest as its trademark.
  • Founded as Akaza Stock Shop in 1936 and formally incorporated in 1944, with a long history.
  • Advances group strengthening as a consolidated subsidiary of Tokai Tokyo Financial Holdings.
  • Early adopter of telecommunications and internet trading among regional securities firms.
  • First in Japan to sell a lottery-attached medium-term government bond fund.
  • Long-time regular member of Nagoya, Osaka, and Tokyo Stock Exchanges.
  • Received business suspension order in 2007 but recovered trust through subsequent improvements.
  • Major shareholders include Tokai Tokyo Holdings and individual shareholders from the Nakamura family.
  • Planned management integration with Ace Securities before subsidiary status but postponed.
  • Mid-sized securities firm with capital of approximately 3.7 billion yen and about 150 employees.

Hidden Connections

  • Its head office location in Nagoya's Shinhonmachi is a hub where many local securities firms gather as the center of regional finance.
  • Has conducted multiple discussions in the past toward management integration with parent Tokai Tokyo Financial Holdings.
  • The Owari Tokugawa family crest 'Maruhachi' was later adopted as Nagoya City's emblem, influencing regional culture.
  • Transferred online trading business to Orix Securities in 2009 and reorganized operations.
  • Aggressive IT utilization image as a regional securities firm through introduction of telecommunications and internet trading.
  • Nakamura family has been major shareholders since founding, indicating strong regional ties.
  • Financial audits conducted by global major auditing firm EY ShinNihon LLC, striving for transparency.
  • As a core Nagoya securities firm, has historically handled large underwriting operations.

Future Outlook

Growth Drivers

  • Customer base expansion through deepening of regionally close services
  • Improved trading efficiency and customer convenience via digitalization
  • Joint rollout of asset management solutions with parent company
  • Diversification and higher value-added financial product lineup
  • Recovery of local economy and increase in corporate investment demand

Strategic Goals

  • Aim to be the most trusted No.1 securities firm in the region
  • Achieve 70% customer usage rate for digital investment services
  • Expand sustainability support through ESG investment promotion
  • Continue stable growth in sales and net profit
  • New customer acquisition through strengthened collaboration with regional financial institutions

Business Segments

Trading for Institutional Investors

Overview
Provides high-quality dealing and market making to major investors such as financial institutions and pension funds.
Competitiveness
Strong trading foundation through regional closeness and major group collaboration
Customers
  • Financial institutions
  • Investment advisory firms
  • Pension funds
  • Fund managers
  • Insurance companies
Products
  • Dealing operations
  • Market making
  • Large stock trades
  • Bond dealing
  • Risk management services

Securities Agency Operations

Overview
Supports financial product handling and promotions for agencies, contributing to diversification of regional finance.
Competitiveness
Long-standing regional trust and established sales network
Customers
  • Small and medium-sized securities firms
  • Agency networks
  • Regional financial institutions
Products
  • Securities intermediation
  • Sales promotion support
  • Product planning collaboration

Asset Management Consulting

Overview
Provides asset management strategy planning and consulting services to a wide range of clients.
Competitiveness
Diverse financial expertise through collaboration with parent company
Customers
  • Small and medium-sized enterprises
  • High-net-worth individuals
  • Corporate clients
Products
  • Mutual fund proposals
  • Portfolio design
  • Risk management advice

Insurance Agency Operations

Overview
Provides risk management solutions through life and property & casualty insurance, supporting customer peace of mind.
Competitiveness
One-stop service linked with financial products
Customers
  • Individual customers
  • Corporate customers
  • Regional organizations
Products
  • Life insurance sales
  • Property and casualty insurance sales
  • Risk management proposals

Telecommunications Trading Services

Overview
Implements convenient and prompt trading support via phone and internet.
Competitiveness
Accumulated customer trust from early adoption
Customers
  • Individual investors
  • Multi-store agencies
Products
  • Phone trading support
  • Internet trading support
  • Call center operations

Competitive Advantage

Strengths

  • Regional closeness in securities sales capabilities
  • Strong collaboration with Tokai Tokyo Group
  • Extensive experience in telecommunications and online trading
  • Stable financial base
  • Diverse financial product handling
  • Capital and business synergies with parent company
  • Brand strength rooted in local Nagoya
  • Prompt customer response system
  • Traditional customer relationships and trust
  • Appropriate auditing by EY ShinNihon LLC

Competitive Advantages

  • Differentiation from competitors through detailed, regionally close services
  • Product diversity leveraging Tokai Tokyo Financial Holdings group strength
  • Success in capturing younger customers as a pioneer in internet trading
  • One-stop asset management services with diverse financial product lineup
  • Well-equipped telecommunications and online trading for wide customer base
  • Close partnerships with regional financial institutions and agencies
  • Trust gained through employee expertise and customer service capabilities
  • Smooth trading enabled by introduction of latest IT tools
  • Strengthened internal controls through collaboration with auditing firm
  • Solid management base as a mid-sized regional securities firm

Threats

  • Intensifying customer competition with major securities firms
  • Decline in investment appetite due to low interest rates
  • Increased operational burden from strengthened financial regulations
  • Rise of online securities and fintech companies
  • Risks from local economic fluctuations
  • Customer data leaks and cybersecurity risks
  • Revenue fluctuations due to market volatility
  • Regional market shrinkage from population decline
  • Commission rate reduction competition from rivals
  • Impacts from economic policies and tax system changes

Innovations

2021: Group Synergy Expansion through Consolidation as Subsidiary

Overview
Became a consolidated subsidiary of Tokai Tokyo Financial Holdings, promoting management efficiency.
Impact
Strengthened management base and product diversification.

2020: Enhancement of Online Trading Platform

Overview
Improved investor convenience through smartphone compatibility and system stabilization.
Impact
Successfully expanded customer base, especially among younger demographics.

2022: Expansion of Investment Education and Seminar Business

Overview
Increased online seminars for beginners to expand customer base.
Impact
Improved customer satisfaction and repeat rate.

Sustainability

  • Promotion of regional economic revitalization support programs
  • Strengthening information security for customer asset protection
  • Environmental load reduction activities at sales offices
  • Promotion of paperless operations through digital tools
  • Employee work-life balance improvement initiatives