Personally i dont think youll be able to do much with 120ccs, but then again, yz125 dirtbikes can make like 30 hp, BUT they also have powervalves to make some of that hp too.
2 strokes are better mod for mod, you can probably double your hp by just porting it and getting the carb right. Also making a good pipe would be nice, maybe a yz125 pipe since its used around that amount of CCs?
Heres an example. I have a blaster, stock it puts out 16 hp, i got it ported, put a FMF pipe on it, jetted the carb, and put a K&N filter on, im now pushing 25-27 hp on it i guess
Now if i actually got a bigger carb, and got my head rechambered, i could probably open up another 5-10 hp in it. I could be over 50hp with it if i went with a stroker crank and a drag pipe, and etc.
My guess is the rating is 5hp since u said its governed to 4000 rpm, a 2 stroke makes most power between 7 and 10k usually, so that little motor is probably making more hp than most would think. I bet you could make 20hp + with that thing, with the correct mods.
Your best bet is to get a drag port and polish (makes the most power IMO) from a reputable quad engine builder (that works on banshees, 250rs, blasters, etc.) A friend of mine is badass at porting, you should go with him, heck get that 2 stroke cylinder right
he ported mine and the gain was amazing. Call Neil at 459-9320 and he can tell you what would be good for that motor
heh, i just noticed i started out saying "not gonna make that much power" then at the end i kinda contradicted myself. I got to thinking about how much power 2 strokes can make. Sorry if i confused you