Hey fender3x.

I'm far from an expert on this, but I'll share the experience I have with my current set up.
First I'll mention that I downsized back in January after moving to house that has a smaller workspace than I used to have.
So the basic specs on my new compressor are:
1.5HP motor (oil-free, silent)
24 L tank (6.34 gallons)
Free Air Delivery (FAD): 110L/min (3.88 CFM)
Max. Pressure: 8 Bar (116 psi)

I have only used this compressor with my HVLP mini-gun (.8mm tip) and so far have only sprayed necks.
It has plenty of pressure and flow and doesn't cycle to where I'd consider it excessive.
I have a larger HVLP gun (w/ 1.4 - 2.0mm nozzles) which I used with my big compressor (since sold it) and I only ever used the 1.4mm nozzle with ac lac in that gun. I'd be interested to see how the little compressor handled it, but at the same time, I have no need to use the bigger gun even for guitar bodies. The mini/touch-up gun is absolutely fine for that. I wouldn't consider painting a car or house with the new compressor, but I didn't buy it for that anyway.

In regard to your compressor, I think it would be "just on the edge" as you put it. I'm under the impression that 1 HP is the absolute minimum for this application. I know it's only .2 HP from yours, and maybe it would be OK, dunno. As I said, I'm not an authority on this subject.
Maybe it would handle a mini/touch-up gun just fine, but cycle more frequently... (???)
It might be worth just buying a small spray gun and giving it a go. You can get a small spray gun in the US for peanuts, and it's not like you're setting up for mass production and using the compressor for hours on end every day.

Hopefully a real expert will reply here...