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As humanbeing shows, what you've circled is known as a "belly button". It's what the rocker (cam floor?) swivels on.
It's a pushrod motor, no OHC or timing chain. Very simple and made for longevity. Also as humanbeing says, there's lots of tutorials on the web about valve adjustments for a CG motor. I always set mine at:
Intake - .05MM
Exhaust - .08MM
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2007 Suzuki DRZ400S (SM convert)
2009 Q Link XP 200
1967 BSA B25 250cc Starfire
2022 Royal Enfield Interceptor 650
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1948 Royal Enfield Model G 350
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