SEOUL, Jan 27 (Reuters) - Hyundai Motor <005380.KS>, South Korea's top automaker, saw its profit jump nearly 50 percent to a record for the December quarter, driven by new models and robust sales in overseas markets including the United States and China.
Hyundai, the world's fifth-biggest automaker along with affiliate Kia Motors <000270.KS>, is expected to maintain a healthy earnings performance this year, with more new model launches and improving brand image.
Hyundai Motor on Thursday reported a 48 percent jump in October-December net profit to 1.4 trillion won ($1.26 billion) net profit, compared with a consensus forecast of 1.35 trillion won from Thomson Reuters I/B/E/S. [ID:nTOE70Q046]
Following are some reactions from fund managers and analysts:
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CHOI DAE-SIK, HEAD OF RESEARCH TEAM, HI INVESTMENT & SECURITIES
"This year's sales outlook is positive. We had expected the fourth quarter's overseas sales (from domestic production) to be lower, and so this earnings result is better than we originally expected."
"The (falling) won/dollar is going to give less influence than in the past to the company's earnings."
"Hyundai is not just focusing on gasoline vehicles. It is investing quite a sum in research and development (for electric cars). Also the profitability of electric cars has not been proved yet."
KIM YOUNG-MIN, FUND MANAGER, IBK ASSET MANAGEMENT CO LTD
"The market overall sees Hyundai Motor continuing to do well this year on the back of strong sales and confidence from the past few years' results. I don't think the strong won will affect Hyundai Motor much because it obviously didn't have a great impact on its earnings last year either."
"I don't think the focus is on Japan or the U.S. any more. Rather, Hyundai Motor's focus is on emerging markets. China has already become its largest market. So I don't think Japanese and U.S. automakers will be a threat to Hyundai."
"As for eco-friendly cars, it will take time before they become popular. For the time being, I don't think Hyundai will suffer from not making active efforts in this area."
PARK YONG-MYUNG, FUND MANAGER, HANWHA INVESTMENT TRUST MANAGEMENT
"I still see Hyundai as a blue chip as it continues to grow its market share, considering enormously strong demand in the Chinese market."
"Shares in Hyundai had risen sharply this year compared with the other companies, so I have a bit toned-down opinion on Hyundai."
"The fact that other foreign peers are growing sales in line with economic recovery means that the pie is getting bigger but would not severely hurt Hyundai's market share that it had tried hard to achieve for long.
"But the growth momentum for Hyundai can slow down, regarding the previous fast pace."
SHIM HONG-SEOP, EQUITY DIVISION HEAD, KYOBO AXA INVESTMENT MANAGERS
"Hyundai Motor will continue to do well this year. Its new models, including the luxury Grandeur, are promising. The strengthening won is a factor that is not positive, but we do not think it will undermine Hyundai's overseas sales as long as the exchange rate remains above 1,000 won per dollar. Hyundai Motor is still more focused on gasoline cars, but gasoline cars will dominate auto industry for some time. Hyundai still has time to develop its own line of eco-friendly vehicles." ($1=1115.0 Won) (Reporting by Seoul Bureau; Editing by Yoo Choonsik)