Richter proposed HUF 600 dividend per share (representing a dividend yield of 1.48%), a 20% increase from last year’s dividend payment of HUF 500 per share. Management has earlier indicated that the payout ratio will be 25%, thus their proposal does not come as a surprise to us (IFRS, non-cons, non-audited net profit was HUF 44.2bn), and would see the announcement as neutral, although we view the pay-out as disappointing as Richter could afford to pay higher dividends in our view given its large cash pile. We reiterate our Sell recommendation on the stock and our fair value estimate of HUF 41,193.