Hyundai Motor Co (005380.KS) posted a better-than-expected 45 percent rise in quarterly profit as output at South Korea's top auto maker spiked after it avoided a strike for the first time in 10 years and as domestic sales rose.
Increased spending by consumers in Asia's fourth largest economy is expected to bolster profits in coming quarters at Hyundai, which controls about half of South Korea's high-margin auto market.
Hyundai's stronger profit comes after the company reached a wage deal in September with its unionised workers, managing to avoid a strike for the first time in a decade.
Last year, Hyundai was hit by work stoppages from June 26 to July 26, which were estimated to have cost the company 1.3 trillion won in lost output.
"It looks like the worst is over for Hyundai, as the won's sharp appreciation against the yen -- Hyundai's biggest headache over the past year -- shows signs of grinding to a halt," said Chung Kyun-sik, chief investment officer at Eastar INvement Advisors.
But, Chung cautioned: "If Hyundai keeps suffering in China, earnings momentum will be slow."