Eventually I managed to bring that piece of junk to life. The issue was with tappets, they weren't nicely adjusted and were very loose and they were not able to open the valves. After three days of struggle, I eventually successfully overhauled an engine for first time. Engine is running great and seems to be quite in power. I'll post whatever pictures I have by tomorrow.
The teflon plastic camshaft seem to be very useful for noise reduction, the only noise in this engine comes from exhaust; which I'll try to reduce as much as possible; I'll search for some 4stroke rikshaw exhaust and give it a try.
Now I'll start searching an exhaust and a dynamo for this engine so that I may have a spare generator in a case my 7.5KVA fails sometime.
Thanks for all the help and suggestions; special thanks to @nabeelryk and @avionics...