Investment Rating - The report does not explicitly state an investment rating for the industry [2]. Core Insights - The nuclear energy sector is exploring hybrid reactors that combine fusion and fission processes, specifically the Z-pinch driven fusion-fission hybrid reactor (Z-FFR), which utilizes D-T fusion to generate high-energy neutrons that drive fission in non-fissile materials like uranium-238 or thorium [2]. - The development of hybrid reactors in China is accelerating, with two main projects: the Xinghuo high-temperature superconducting fusion-fission experimental reactor led by China National Nuclear Corporation and Lianchuang Superconductor, aiming for completion by 2030 with an investment of approximately 20 billion; and the Xianjue energy project led by Guoguang Electric and the Tianfu Innovation Energy Research Institute, targeting commercialization by 2040 [2]. - Key technologies for the Z-FFR include pulsed high-current technology and tritium breeding blanket technology, with notable companies involved being Wangzi New Materials for high-power pulsed power systems and Guoguang Electric as a supplier in the tritium factory sector [2]. Summary by Sections - **Nuclear Energy Mechanisms**: Fission involves heavy atomic nuclei splitting into lighter nuclei, releasing energy and neutrons, while fusion combines light atomic nuclei under extreme conditions to form heavier nuclei [2]. - **Hybrid Reactor Design**: The Z-FFR represents a novel nuclear energy system that addresses the limitations of both fusion and fission technologies, aiming for enhanced energy output through innovative methods [2]. - **Project Developments**: The report highlights significant investments and timelines for the development of hybrid reactors in China, indicating a strong push towards achieving commercial viability in the coming decades [2].