Hyundai Motor Co <005380.KS>, South Korea's top automaker, said its quarterly net profit rose 71 percent to a record high, beating estimates on healthy demand in the United States and China.

Hyundai, which with its affiliate Kia Motors Corp <000270.KS> is the world's No.5 car maker, reported a net profit of 1.39 trillion won ($1.17 billion) in the second quarter, versus a consensus estimate of 1.1 trillion won from 23 analysts surveyed by Thomson Reuters I/B/E/S.

Following are some reactions from fund managers and analysts:

JUNG SANGJIN, ASSET MANAGER, DONGBU SECURITIES

Hyundai's product lines do not show much differentiation from competitors, which limits its competitiveness. Hyundai's competitiveness in the international market will depend on the strength of the won against major currencies. The launch of new models will only have a limited effect in the short term, and WE cannot see it as a solution for worsening demand.

OH HYUN-SEOK, MARKET ANALYST, SAMSUNG SECURITIES

The weaker won seems to have attributed to the record quarterly earnings.

After a series of bullish earnings, market focus now is whether the second quarter might have been the peak. Market players are taking a short-term position on the stock and that's why Hyundai shares barely moved to the strong results.

But I believe Hyundai shares have room to go up further, given that its absolute level of profit has gone up, and so has its competitiveness.

JANG HUH, MANAGING DIRECTOR, PRUDENTIAL ASSET MANAGEMENT

The second half could get difficult for South Korean automakers as the U.S. economic recovery is seen slowing (and) automakers are extremely sensitive, both fundamentally and sentimentally, to the U.S. economy.

It will also grow more difficult to outperform Japanese automakers strongly as we have seen the likes of Toyota enforcing marketing strategies very aggressively.

Within the domestic market, Hyundai Motor may recover some of its market share lost to Kia Motors, with new models such as the new Avante expected in the second half.

(Reporting by Cheon Jong-woo, Jungyoun Park, Kim Yeon-hee and Suh Kyung-min; Editing by Jonathan Hopfner)

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