Richter proposed HUF 600 dividend per share (represents a dividend yield of 1.48%), increasing the last year’s dividend payment by 20% (from HUF 500). Management has earlier indicated that they payout ratio will be 25%, thus their proposal does not come to us as a surprise (IFRS, non-cons, non-audited net profit was HUF 44.2bn), thus we would see it as neutral. Although we are not satisfied with this ratio as the Company sits on a large cash position. We reiterate our Sell recommendation on the stock and our fair value estimate of HUF 41,193.