Yeah actually most engines are near the 1- 1.5 HP mark even when they're claimed to be 2.7 HP etc.
Anyway that engine may be ok. But I do have experience with an older CEN engine and a newer one from its matrix buggy. Now that buggy has only been around for about a year, and its engine indeed runs hot. And I aint the only one! pop over to the buggy forum and do a search and you will find lots of people moaning. So CEN aint come that far.
Anyway they may get the bigger ones made in another plant which would probably sort out the problems
I wasn't having a dig at you just saying my experiences.
I'll try and find some data later for the HP thing, and I did say NEARER 2 than 5 that could mean 2.9 hp

The point is till you dyno it you won't know for sure