Overbore with forged piston (if there is such a thing for such a motor), proper porting, expansion chamber, carb...
There isn't much info to be found (in my quick Google search) but if you do the research, a lot can be done with what you have. In general, two stroke engines were relatively de-tuned from the factory to save wear and tear. Open it up, let it breath with modified stock parts a big pipe and you should see some noticeable performance gains.
That said, it's a 125 single designed in the 50s. May be better to build it to run and look great without overstressing the power plant and find a proper performance oriented smoker (RD, Kaw triple, etc...) to get the go fast from.
All really depends on how much you want to spend in money, and more so time.