It's not too late to jump on the bandwagon. That's what analysts are saying about shares in South Korea's top car maker, Hyundai Motor Co, which they say are cheap compared with foreign rivals amid booming exports and an expected rebound in domestic sales.
Hyundai shares, which outpaced the Seoul market's 29 percent gain last year with an 82 percent jump, hit a 20-month high this week.
But even at these levels, many analysts say Hyundai Motor is their top pick of the year.
"Clearly, Hyundai has a lot of growth potential and is a big liquid stock, which is something investors like," Goldman Sachs analyst Rajeev Das said. Hyundai Motor is the country's seventh biggest stock with a market value of $9.9 billion.
"The recovery of domestic sales - more profitable due to higher margins - would be the main theme for the year."
Some analysts do, however, lace their views with caution in case an escalating crisis in South Korea's ailing credit card sector delays a much-anticipated revival in consumer spending and puts Hyundai's ambitious sales target this year out of reach.
Hyundai's exports soared 21.9 percent last year, making up for weak domestic sales hit by a government crackdown on consumer debt and an uncertain economic outlook.
Hyundai Motor has targeted sales of 2.145 million vehicles worth 31 trillion won ($26 billion) for 2004, up 13 percent from 2003. It expects a rise of 10 percent or more in exports and plans to launch two or three new models.
It plans to increase investment 36 percent to 3.17 trillion won to expand its line-up and meet rising demand.
Hyundai's China venture, which began production in December 2002, expects to triple sales to 150,000 units this year.
"China is a great market to exploit. Given the market's dynamics, they should see a huge volume growth, partly because they are starting with a low base and they are introducing a smaller new car model this year," Goldman's Das said.
In the US market, where Hyundai ranks seventh with a 2.4 percent share, it sold more than 400,000 vehicles for the first time since its US foray 17 years ago. It became the fourth foreign car maker to meet this target after Toyota Motor Corp, Honda Motor Co and Nissan Motor co.
Hyundai has gained popularity in overseas markets on improved quality and long warranties. A weak brand, after building low-end cars for decades, remains its Achilles heel.
Most analysts bank on a turnaround in domestic sales to power Hyundai's earnings this year, with Morgan Stanley expecting an 11 percent rise, but some are sceptical.
"Things largely hinge on how troubles in the credit card firms pans out," Song Sang-hoon, a Hyundai Securities' analyst said. "Consumers are not free to spend just yet."
Some also reckon competition in the US market would become tougher as General Motors Corp and others launch new models. Kim Hag-ju, an analyst at Samsung Securities, points to growing inventories overseas as a hurdle to export growth.
Still, Hyundai is a better bet than its global peers due to its growth potential and its cheap share price, analysts say.
Hyundai, which has 48 percent of South Korea's 20 trillion won domestic market, is trading at 1.6 times its earnings before interest, tax, depreciation and amortisation, compared with 4.7 times for Toyota and 4.3 times for Honda.